Jessica Simpson and Eric Johnson Party in Palm Springs

Happy New Year! Parents-to-be Jessica Simpson and Eric Johnson had much to celebrate in the late hours of Dec. 31, and did so surrounded by friends at the Purple Palm in the Colony Palms Hotel in Palm Springs, Calif. The couple and their pals partied in a private dining room, enjoying dinner and conversation. "It looked like they were having a great time," a source tells PEOPLE. "Everyone was very dressed up and they were definitely there to celebrate." – Jennifer Garcia